Prosperity Bancshares (NYSE:PB) Stock Gets Price Target Cut from Piper Sandler

Prosperity Bancshares (NYSE:PB) had its target price reduced by Piper Sandler from $80.00 to $78.00 in a report released on Thursday morning,Benzinga reports. They currently have a neutral rating on the bank’s stock.

A number of other research firms have also recently weighed in on PB. Raymond James Financial raised Prosperity Bancshares from a “market perform” rating to an “outperform” rating and set a $78.00 price objective for the company in a research report on Tuesday, October 6th. TD Cowen reduced their target price on Prosperity Bancshares from $84.00 to $78.00 and set a “buy” rating on the stock in a research report on Monday, October 5th. Royal Bank Of Canada decreased their price target on Prosperity Bancshares from $80.00 to $77.00 and set a “sector perform” rating for the company in a research note on Friday, October 9th. Citigroup lowered their price target on Prosperity Bancshares from $79.00 to $77.00 and set a “neutral” rating for the company in a report on Tuesday, September 22nd. Finally, Stephens boosted their price target on Prosperity Bancshares from $85.00 to $87.00 and gave the stock an “overweight” rating in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $78.36.

Prosperity Bancshares Trading Down 0.8%

NYSE:PB opened at $71.98 on Thursday. The stock has a market capitalization of $7.26 billion, a price-to-earnings ratio of 13.09, a PEG ratio of 0.80 and a beta of 0.66. Prosperity Bancshares has a 52 week low of $63.20 and a 52 week high of $77.20. The company has a quick ratio of 0.75, a current ratio of 0.77 and a debt-to-equity ratio of 0.01. The firm has a 50 day moving average of $69.52 and a 200 day moving average of $70.35.

Prosperity Bancshares (NYSE:PB) last released its quarterly earnings results on Wednesday, October 28th. The bank reported $1.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.35 by $0.32. The business had revenue of $495.70 million for the quarter, compared to analyst estimates of $491.49 million. Prosperity Bancshares had a net margin of 26.99% and a return on equity of 7.68%. The business’s revenue for the quarter was up 56.0% on a year-over-year basis. During the same period in the previous year, the company earned $1.45 earnings per share. As a group, sell-side analysts anticipate that Prosperity Bancshares will post 6.46 earnings per share for the current fiscal year.

Prosperity Bancshares Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, January 4th. Shareholders of record on Tuesday, December 15th will be given a dividend of $0.64 per share. The ex-dividend date of this dividend is Tuesday, December 15th. This represents a $2.56 dividend on an annualized basis and a yield of 3.6%. This is an increase from Prosperity Bancshares’s previous quarterly dividend of $0.60. Prosperity Bancshares’s payout ratio is presently 43.64%.

Insiders Place Their Bets

In other news, Director Ned Holmes sold 500 shares of the stock in a transaction dated Wednesday, October 28th. The stock was sold at an average price of $70.05, for a total value of $35,025.00. Following the transaction, the director directly owned 65,615 shares of the company’s stock, valued at approximately $4,596,330.75. This represents a 0.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In the last quarter, insiders sold 13,800 shares of company stock worth $973,234. 3.96% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Chicago Partners Investment Group LLC boosted its position in Prosperity Bancshares by 8.3% in the 3rd quarter. Chicago Partners Investment Group LLC now owns 14,835 shares of the bank’s stock worth $1,031,000 after purchasing an additional 1,141 shares in the last quarter. Provenance Wealth Advisors LLC purchased a new position in shares of Prosperity Bancshares during the 3rd quarter valued at approximately $25,000. Oregon Public Employees Retirement Fund increased its holdings in shares of Prosperity Bancshares by 19.7% during the 3rd quarter. Oregon Public Employees Retirement Fund now owns 24,932 shares of the bank’s stock valued at $1,651,000 after purchasing an additional 4,100 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. purchased a new position in shares of Prosperity Bancshares during the 3rd quarter valued at approximately $373,000. Finally, Profund Advisors LLC lifted its stake in shares of Prosperity Bancshares by 6.7% in the 3rd quarter. Profund Advisors LLC now owns 3,514 shares of the bank’s stock valued at $233,000 after purchasing an additional 221 shares during the period. 80.69% of the stock is currently owned by hedge funds and other institutional investors.

Prosperity Bancshares News Summary

Here are the key news stories impacting Prosperity Bancshares this week:

• Positive Sentiment: Strong Q3 results support the growth outlook. Prosperity Bancshares reported quarterly EPS of $1.67, exceeding the $1.35 consensus estimate, while revenue of $495.7 million also topped expectations. Revenue increased 56% year over year, and management highlighted approximately 41% asset growth. The results have raised expectations for margin-driven growth. Prosperity Bancshares Q3 Earnings Lift Hopes For Margin Driven Growth
• Positive Sentiment: StoneX upgraded PB to Buy. The upgrade indicates that the analyst sees sufficient upside in the bank’s earnings, balance-sheet expansion, or valuation following the quarterly report. Prosperity Bancshares trades higher as StoneX upgrades to Buy
• Positive Sentiment: Analysts raised their targets. Royal Bank of Canada increased its target from $77 to $79, while Citigroup lifted its target from $77 to $78. Although both firms retained relatively cautious “sector perform” or “neutral” ratings, the higher targets imply additional potential upside from the referenced share price. Royal Bank of Canada recommendations Citigroup recommendations
• Neutral Sentiment: Piper Sandler lowered its target but maintained a neutral rating. The target moved from $80 to $78, signaling more restrained expectations even though the revised target remains above the referenced trading level. Piper Sandler recommendations
• Neutral Sentiment: Late-trading European quotation provided little new fundamental information. PB was quoted at EUR 64.75 in late trading, but the item did not identify a new company development or catalyst. Prosperity Bancshares stock quoted at EUR 64.75 in late trading
• Negative Sentiment: A director sold a combined 1,100 shares. Ned Holmes sold shares worth approximately $77,000 in two transactions. The sales were small relative to his remaining holdings, but insider selling can create a minor overhang for sentiment. SEC insider ownership filing

About Prosperity Bancshares

Prosperity Bancshares, Inc is a regional bank holding company headquartered in Houston, Texas. Through its principal subsidiary, Prosperity Bank, the company provides banking and financial services to individuals, businesses, and public entities.

Prosperity Bank offers deposit products, commercial and consumer lending, mortgage and real estate lending, treasury management, online and mobile banking, and other traditional banking services. Its lending activities include financing for commercial businesses, agriculture, residential and commercial real estate, and personal needs.

Founded in 1983, Prosperity Bancshares has expanded primarily through organic growth and the acquisition of community banks.